Features

Efficient tax administration critical to generating expected revenue

Published

2 years ago

2024/02/16

By Nimali Liyanage
B.Sc. Accountancy (Sp.), FCA

The broadening of the tax net and the removal of the Value Added Tax (VAT) exemptions have had a positive impact on the economy, but the government will not earn the expected tax revenue if some basic reconciliations cannot be done by the Inland Revenue Department’s (IRD) RAMIS programme. In a country with world-class IT professionals, it is sad to note that the authorities have not been able to digitise the processes to ascertain information to ensure greater tax compliance, and efficiency in collections.

As a tax professional with over 20 years of experience working in the Big 4 in Sri Lanka and overseas, who worked in one of the largest conglomerates in Sri Lanka and led the automation of Withholding Tax (WHT) deduction at source on payment of service fees under Section 85 of the Inland Revenue Act, I would like to make my observations on some of the inefficiencies and unproductive work carried out by the IRD officials and on areas for improvement particularly regards WHT deducted at source on interest income as an example. Many such areas need attention, including VAT deferred under Section 22(7) of the VAT Act.

A) Non-compliance by the banks and financial institutions (‘withholding agent)

Although the IRD has issued guidelines on monthly withholding tax certificates and tax certificate specimens, in most instances, the taxpayers do not get the withholding tax certificates as per the IRD-prescribed format by the due dates.

In an era when withholding tax certificates can be emailed to all customers with a click of a button or can have the option to download through online banking or the banking App, banks and financial institutions require their customers to make written requests for the issuance of withholding tax certificates.

Further, it appears that several banks and financial institutions have failed to educate their officers who deal with their customers on the requirement to issue the WHT certificate to, and this leads to a waste of time visiting the banks several times to obtain the certificates and get them corrected to comply with the IRD specimen.

Furthermore, I believe banks and financial institutions do not report the WHT deducted in a format that can be matched via the RAMIS programme. I can only assume that the IRD has not set a standard format, resulting in the banks reporting them differently without realising its consequences.

B) The IRD inefficiencies add more burden on the compliant taxpayers

Once withholding tax (“WHT”) is deducted, the withholding agent must issue a WHT certificate to the customer before the end of the following month. The taxpayer claims a tax credit against tax payable based on the certificate issued. However, instead of reconciling with the withholding agent’s RAMIS records and obtaining a direct confirmation from the withholding agent, the IRD officials ask the taxpayers to liaise with the respective withholding agent and provide details such as the RAMIS schedule reference number of the taxpayer to support such credit despite the taxpayer having a valid WHT certificate.

The IRD should check whether the bank/financial institution has complied with the guidelines/provisions issued by the IRD when the taxpayer has provided a WHT certificate to support the tax credit. If the IRD cannot reconcile the credit with the taxpayer’s records, or the WHT certificate is not per the specimen, the IRD should take necessary action against the withholding agent without harassing a compliant taxpayer.

This sort of practice will waste taxpayers’ and tax officials’ time on unproductive work and cause taxpayers to spend additional money on tax consultants and lawyers to appeal, and the whole process will drag on for several years, which may, in most instances, not generate additional tax revenue.

When the withholding agent fails to deduct WHT or remit the same to the IRD, the taxpayer should not be penalised. In such instances, the IRD should recover penalties and interest from the withholding agent without burdening innocent taxpayers.

The IRD should be equipped with checks and balances to catch those who claim tax credits using bogus WHT certificates. Further, there should be a mechanism to enable taxpayers with valid WHT certificates to claim compensation from the IRD for the additional time and money spent/wasted due to the IRD’s inefficiencies.

Towards better tax administration on tax deducted at source

If the following measures are implemented, the government can earn the expected tax revenue from tax deducted at source, and the time of IRD officials can be spent on more productive work.

All the banks and financial institutions should report interest income and withholding tax deducted at source in a format that matches the taxpayers’ monthly withholding tax certificates in RAMIS.If a customer does not provide a Tax Identification Number (TIN), then a higher WHT rate should be introduced and applied to such persons, including non-residents.

The withholding agents should issue the WHT certificates proactively without waiting for the customers to make written requests, as the IRD requires the certificates to be given before the end of the following month and not annually.

WHT certificates should be issued to the customers as per the IRD guidelines and facilitated downloading them online or via the banking app, along with downloading the monthly bank statements without an additional fee.

The IRD should capture interest income and WHT deducted against each taxpayer’s TIN based on the RAMIS schedules submitted by the banks and financial institutions. For example, in Australia, taxes deducted at source on all sources of income are recorded in the Australian Tax Office Pre-filling Report, which the taxpayers can access online, and the taxpayers are not required to submit certificates or schedules.

These details are populated in the tax return automatically at the time of preparation of the tax return, and taxpayers can cross-check the accuracy of the details at the time of lodgement of their tax returns, update the details, and make comments if they are incorrect so that the tax authority can follow up with the withholding agents.

Once the IRD captures the details in a report similar to the pre-filling report, the requirement to issue a WHT certificate and furnish the WHT schedule can be removed.

Those who have earned interest income without having a TIN should be tracked, and action taken against them.

There are many such areas that the IRD needs to work on for better tax administration, such as issuing tax clearances for the repatriation of funds overseas so that the taxpayers are not reluctant to pay taxes and use proper channels to remit funds. The corrupt elements among the IRD officials discourage taxpayers from paying taxes and prevent the government from generating the expected tax revenue. The poor administrative practices at the IRD cause waste of time and money.

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Features

Proactive peacemaking becomes a paramount need

Published

7 hours ago

2026/06/4

Sahan Weerasooriya

Wasting wars: Some war-displaced people in Lebanon. BBC

It may be some time before the full impact of food inflation is felt in the West. Until such time the world would continue to keep itself in suspense over whether the Trump administration is in earnest when it seeks to convey the impression that it is backing a negotiated solution in West Asia.

As is usually the case, consumer stress would be one of the final determinants of political change. To the degree to which the average US consumer somehow ‘muddles through’ and puts the food on the table, to the same extent would the Republican sections of the US public in particular be tolerant of the Trump administration’s inconsistent handling of the West Asian war and the main issues stemming from it. That is, there would be no grave popular disaffection and a demand for political change in the short term.

However, the indications are that the Trump administration’s support base is suffering some erosion in the wake of the current economic crisis. While reports indicate that Democratic sections are firming-up their opposition to the political centre, Republican support for Trump is also showing signs of waning, we are given to understand.

The above developments are probably why Trump is on record as having given Israeli Prime Minister Benjamin Netanyahu a ‘dressing down’ recently on his seeming intransigence on the question of giving negotiations a chance in West Asia. The show of displeasure could be really aimed by Trump at containing the impatience of the American public.

However, the current ground situation in the Middle East, particularly the uncontained bloodshed, is likely to impress on the thinking sections of the world that more than temporary political change is needed in West Asia and the US.

A well thought out political solution that addresses all the contentious issues at the heart of the Middle East conflict is what enlightened opinion would demand, and very rightly. Right now, the ‘peace efforts’ initiated by the Trump administration give the impression of being piecemeal solutions at best.

There have been, of course, numerous initiatives in the past aimed at bringing permanent peace to the Middle East. These failed mainly because they did not address in full the root causes of the conflict.

At bottom the Middle East conflict is mainly about race and religious hate bred by socio-economic and material inequalities. For instance, if the Palestinian people were not displaced and deprived of land occupied by them at the time of the founding of the Israeli state, ethnic enmities would not have grown to the current unmanageable proportions.

When addressing the above questions, though, it must be remembered that the Israelis too were a displaced people who were entitled to land and a state of their own in the Middle East. Basically, out of these seemingly irreconcilable and conflicting demands have grown the Middle East imbroglio.

Middle East peace is considerably about reconciling these demands and arriving at a solution that would ensure the creation of two states that would opt for peaceful co-existence thereafter.

As long as the US does not see the need for a non-partisan solution that addresses the needs of both ethnicities and religions and goes all-out, as it were, to have it implemented, the Middle East would continue to bleed.

However, staunching the blood flow through the creation of two states would be only half the job done, though a very important part of it. More pernicious, pervasive and difficult to remedy are the inter-ethnic and inter-religious hatreds that have been unleashed over the decades.

However, if substantial, long-lasting peace is to be fostered in the region the latter ‘demons’ would need to be exorcised from the hearts and minds of the communities concerned. No doubt an uphill task but one that must be undertaken by those who wish the region well.

The UN would need to put its ‘best foot forward’ in such undertakings but it is time that it dawned on the international community and other caring quarters that Middle East peace, and all other such uphill challenges, require proactive peacemaking on the part of all civilized sections for their effective management. That is, public involvement in peacemaking too is a must.

Since hatreds are harboured in the human consciousness the enmities embedded in the latter need to be managed and defused judiciously alongside other undertakings in a peace process. In the case of West Asia, such enmities could be even spread globe-wide besides being multi-dimensional. For instance, it ought to be thought-provoking that Iran is insistent on a peace initiative that would also include Lebanon.

Besides security considerations it is also ethnic and religious affiliations that account for Iran making this demand. For instance, the Shias are a numerically important religious community in Lebanon and they provide a significant number of Hizbollah fighters, who are in a vital sense carrying out a ‘proxy war’ for Iran. It also needs to be factored in that Iran is a Shia-majority country.

Thus trans-border religious affiliations could add to the complexities and enormity of ethno-religious conflicts. However, the task of managing centuries-long enmities needs to be launched and prodded on with by peacemakers since a downing of arms alone would not guarantee substantive peace.

It is not realized sufficiently that the process of ending hatreds begins with mutual apologies by antagonists to a conflict for the harm inflicted on each other. This would be anathema in some ears but there is no getting away from the requirement. It is the vital first step to permanent peace anywhere.

In fact there could be no reconciliation worth speaking of without such mutual apologies. It is a point worth re-iterating in these times when even the government of Sri Lanka is voicing the need for national reconciliation. Well, without the words, ‘I am sorry’, there could be no permanent end to enmities – they would do well to remember.

The above requirements may not go down very well with governments, but they resonate in the hearts and minds of most people, since they are inheritors of religious traditions of some kind.

This is a principal reason why peacemaking works well when publics too are involved in them. The effectiveness of such campaigns increases several fold when they have a Mahatma Gandhi or a Jawaharlal Nehru at their helm. A strong proactive involvement by the public in peace could lead to the emergence of such leaders at some point in these campaigns.

Features

Dialog Brings Sri Lanka’s Largest Digital Vesak Experience to Matara

Published

7 hours ago

2026/06/4

Sahan Weerasooriya

From left to right: Hon. Saroja Savithri Paulraj, Hon. Sunil Handunnetti, and Lasantha Theverapperuma experience the Dialog 5G Ultra-powered VR tours.

Official Digital Partner of the 2026 ‘Dakshina Prabha’ National Vesak Zone

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, collaborated with the Ministry of Buddha Sasana, Religious and Cultural Affairs to bring one of Sri Lanka’s largest and most technologically advanced Vesak experiences to the ‘Dakshina Prabha’ National Vesak Zone. The three-day celebration, in Matara attracted more than hundred thousand visitors, who engaged with a series of innovative digital activities powered by Dialog 5G Ultra, including Artificial Intelligence (AI) and Virtual Reality (VR) experiences, digital pandols and a Data Dansala. The opening ceremony was attended by Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development and Hon. Saroja Savithri Paulraj, Minister of Women and Child Affairs, along with distinguished guests and Dialog’s senior management.

One of the key attractions at the venue was the Dialog 5G Ultra-powered Virtual Reality (VR) experience, which attracted more than 35,000 participants. The activation enabled devotees to virtually visit and pay homage to sacred Buddhist sites, including the Jaya Sri Maha Bodhi in India and the Atamasthana in Anuradhapura, directly from the Vesak zone in Matara.

Visitors receive complimentary mobile data through Dialog’s QR-powered Data Dansala.

Dialog also conducted an AI Digital Vesak Greeting Card Competition from 21 May to 01 June 2026, attracting numerous entries from across the country. The shortlisted designs were showcased across 20 large LED screens throughout the venue and across Matara City, and were also made available for download via mobile devices. Further, through the use of AI, traditional Jathaka Katha were reimagined in a digital format, demonstrating how technology can be used to preserve and enhance cultural and religious heritage. Together, these initiatives blended traditional Vesak celebrations with emerging technologies, offering visitors a unique and immersive way to engage with Vesak traditions.

Extending the spirit of Vesak through connectivity, Dialog conducted a special Data Dansala powered by its QR Reload platform, enabling visitors to receive complimentary mobile data by scanning QR codes placed across the venue. In addition to the Matara National Vesak Zone, similar Data Dansala activations were also conducted at the Gangaramaya and Bauddhaloka Vesak zones in Colombo.Visitors also had the opportunity to create personalised Vesak-themed digital photos through an AI Photo Booth, generating AI-enhanced portraits using their own photographs and adding a contemporary digital element to the Vesak celebrations.

Visitors watch AI-generated Jathaka Katha

Commenting on the initiative, Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development, said, “The 2026 Dakshina Prabha Vesak Festival marked the first time AI-powered digital innovations were incorporated into a National Vesak Festival in Sri Lanka. Presenting Buddhist stories and teachings through technology created a new and engaging way for visitors to connect with these traditions. We thank Dialog for supporting this initiative and for working closely with us to bring our vision to life. Their contribution played an important role in making this first-of-its-kind event a reality.”

Lasantha Theverapperuma, Group Chief Marketing Officer of Dialog Axiata PLC said, “We thank the Government of Sri Lanka for the opportunity to support the 2026 Dakshina Prabha National Vesak Festival and for embracing technology as part of this year’s celebrations. As the Official Digital Partner, we were privileged to contribute through our Dialog 5G Ultra and AI capabilities, creating new ways for visitors to engage with Vesak traditions while preserving their cultural significance for future generations.”

Beyond supporting the National Vesak Zone in Matara, Dialog also enhanced the Gangaramaya and Bauddhaloka Vesak zones through a range of digital activations during the Vesak season. The company additionally continued its sustainability initiatives, including the Thirasara Aloka Poojawa, which illuminated rural places of worship through solar-powered lighting solutions.

Features

Beauty, elegance and talent…for women

Published

7 hours ago

2026/06/4

Sahan Weerasooriya

Universal Woman is an international pageant focused on “beauty, elegance, and talent” for women, positioning itself as a platform to shape global ambassadors. The 2026 edition will be held in Cambodia, and Sri Lanka will be there, as well.

According to reports coming my way, contestants, at the international event, will work with industry trailblazers, under international standards.

Sri Lankan supermodel, runway and pageant trainer Chulpadmendra Kumarapathirana, is the National Director for Universal Woman Sri Lanka 2026.

With over two decades in the industry, Chula was crowned Miss Sri Lanka 2006, and has since shaped the next generation of titleholders through her Colombo-based Chulpadmendra Catwalk Studio, widely regarded as one of the country’s leading modelling academies.

The team behind Universal Woman Sri Lanka 2026

A former host of Derana Miss Sri Lanka for Miss World 2008 and a judge for Miss Universe Sri Lanka 2025, Chula now serves as National Director for Universal Woman Sri Lanka 2026, leading the franchise’s search for Sri Lanka’s delegate to the international final in Cambodia.

Applications for Universal Woman Sri Lanka 2026 are being taken, via WhatsApp: 077 659 4994, says Chula.

The judging panel for Universal Woman Sri Lanka 2026 includes Senaka De Silva, Pageant Aesthetic Advisor & Chairperson of the Judging Panel, Angela Seneviratne, Caroline Jurie, Rozelle Plunkett, and Suraj Mapa.

Universal Woman Sri Lanka 2026 officially began its journey with a first round of auditions, held in Colombo, marking the start of an exciting new chapter in Sri Lanka’s pageant industry.

Launching the first round of auditions

The platform aims to empower women while selecting an intelligent, confident, and inspiring representative to compete at the Universal Woman International Pageant 2026 in Cambodia, this September.

Universal Woman Sri Lanka now moves forward with the vision of creating one of the country’s most prestigious and empowering pageants while preparing to crown a queen who will proudly represent Sri Lanka on the international stage.